What you need to know about paid leads on property-search sites
Popular property-search site Streeteasy.com recently rolled out a change to its Premier Agent program for real estate agents that is confusing potential buyers and angering brokers. Until recently, the site featured the name of a property’s listing agent and company prominently, making the main contact clear and providing a direct “contact agent” button. But now when a potential buyer clicks “contact agent,” the message instead might be sent to a broker who has paid to receive referrals for a specific zip code. The listing broker can still be reached, but the process is more convoluted. Now users must click on…..
Continue ReadingReverse mortgages offer cash to homeowners, but it comes at a price
A reverse mortgage allows a homeowner to convert part of the equity in a home to cash without having to sell the property. The cash may be paid in installments or a lump sum, so typically you don’t need to pay anything back as long as you live in your house. Factors such as age, the value of the property and how much remains on the mortgage all affect the amount of money a homeowner may borrow through a reverse mortgage. But there are important things to consider. Owners typically must remain in the home for at least 5-10 years…..
Continue ReadingReview Your Estate Plan When You Move Across State Lines
When you make a move out of state, be sure to review your estate plan with an estate planning attorney in your new domicile, as trust and estate laws have some differences from state to state. In most states, the probate court will recognize a will from another state. But in the case of a dispute, you can’t be sure the judge in the new state will understand your will the way that you meant it. Your new place of residence might place restrictions on executors from out of state. It’s also possible that your new medical provider or bank…..
Continue ReadingHow to Change an Irrevocable Trust
When dealing with irrevocable trusts the ability to effect change can be difficult to understand, presenting more questions than answers. The correct answers often depend on a variety of factors, but a good starting point is state law and the trust document itself. When modification or termination of an irrevocable trust is sought, a possible mechanism is for the trustee or beneficiary to seek a court order. When it comes to interpreting language in an irrevocable trust, appointing a trustee or providing directives to a trustee, a non-judicial settlement agreement may be an alternative to filing a court proceeding. In…..
Continue ReadingIssues to Consider Before Gifting Your Home to Your Child
Passing your house on to your children before your death offers some advantages, but there are pitfalls to avoid. If your children inherit the property through your estate, the cost basis on the property will be the value of the home on the day of your death. But if you gift the children the property while you are still alive, they will inherit your cost basis, including potentially large capital gains if they decide to later sell the home. You still might want to remove the property from your estate to help you better qualify for assistance with long-term care…..
Continue ReadingDon’t let the end of a home-equity line of credit sneak up on you
The terms of home-equity lines of credit, or HELOCs, typically come due 10 years in, at a time at which many homeowners are unprepared for the fact that their monthly payments are about to go up significantly and sometimes double. HELOCs are secured by a mortgage, require only interest payments and can be used to consolidate debt, fund major expenses, etc. But after the initial 10-year period the principal becomes due. At that point, homeowners can choose to pay off the balance, refinance it into a first or second mortgage or make monthly payments of principal and interest, typically for…..
Continue ReadingBeware the Pitfalls of Naming a Minor as your Beneficiary
A minor generally doesn’t have the right to manage his or her assets, including any inheritance. But sometimes a minor child becomes the beneficiary of a sizable family inheritance. That can occur because a parent dies without a will or trust, leading to an unavoidable direct inheritance by the child. If a minor is chosen as a beneficiary of a retirement account or life insurance policy, many challenging issues can arise. First of all, a minor is not legally allowed to take control of inherited assets left directly to him or her. Instead, an adult or financial institution has to…..
Continue ReadingEstate Planning Options for Blended Families
The dynamics of a blended family, defined as one where at least one spouse has at least one child from a prior marriage or relationship, can complicate financial and estate planning because no off-the-shelf plans apply. It’s important to contact your estate-planning lawyer to ensure complete review of all personal and economic aspects of your family and a resulting plan that works for everyone involved. From designating account beneficiaries to updating wills and trusts, it takes attention to detail to ensure specific wishes are carried out properly. Effective, collaborative planning can address the family’s needs and goals while building trust…..
Continue ReadingIRS: Account transcripts can serve as estate tax closing letter
A recent IRS notice confirms that an account transcript issued by the IRS qualifies as a substitute for an estate tax closing letter, as long as the transcript includes the proper transaction code. An estate tax closing letter indicates that the IRS has accepted an estate tax return and that the estate’s federal tax liabilities have been satisfied. Once the letter has been received, it makes it clear to the executor of the estate that it can proceed with finalizing the estate administration process. The receipt of the closing letter is often needed to meet requirements for state law probate…..
Continue ReadingCredit monitoring: Be aware the credit score you get might be different than lenders receive
Subscribing to a credit monitoring service to keep tabs on your credit score can be a helpful way to manage and protect your credit. But did you know that the score you purchase isn’t always the same as the one the lender obtains from a credit reporting agency? That comes as a surprise to many borrowers. But the real questions are why is this the case and what can you do about it? Both credit monitoring services and credit reporting agencies make money by selling credit reports. You can buy an educational credit score from a credit monitoring service when…..
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